Calculate the amount fresh cut paid for goodwill - fresh


Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $12,600,000 in cash. The book value of Premium Meats' net assets (assets minus liabilities) was $7,958,000. The book values and fair values of Premium Meats' assets and liabilities were:

Book Value Fair Value

Receivables $ 1,400,000 $ 1,300,000

Property, plant, and equipment 8,000,000 9,400,000

Intangible assets 208,000 1,200,000

Liabilities (1,650,000) (2,000,000)

Net assets $ 7,958,000 $ 9,900,000

Calculate the amount Fresh Cut paid for goodwill?

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Managerial Accounting: Calculate the amount fresh cut paid for goodwill - fresh
Reference No:- TGS0791206

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